If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.
I did not learn anything new from this book. It has all been said before- to be financially successful, invest in property and go into business rather than work for someone else. Rehash of books like Rich Dad, Poor Dad.
I did not like the approach Shemin took on people with education – they think in a straight line rather than thinking differently to others. This clearly is a gross generalisation since in all fields they are a variety of thinking types.
Overall this book not is not worth the read.
Gifts to Your Customers
These are not an allowable business expenses unless you are giving free sample of products or your gifts have conspicuous advertising and the cost of the gift does not exceed £50+VAT per person per year. Further, food, tobacco, drink or gift vouchers are not tax deductible.
You can reclaim the VAT as long as the cost is no more than £50+vat per gift to each customer.
Gifts to Staff
Taxman says trivial benefits to staff as staff welfare are tax deductible and VAT can be claimed by the employer. Further, employees are not taxed on these trivial benefits. Examples of trivial benefits include turkey, box of chocolates or bottle of wine. Taxman has not set financial limits on these trivial benefits but he has said that value of these gifts should be reasonable.
Third Party Gifts
Employees can receive gifts from third parties (eg suppliers and customers) without being taxed as long as the gifts are up to the value of £250 (including VAT).
Virtually every potential client I meet fees are one of the critical factor in employing an accountant. Fees should be a factor in a decision but it should not be an only factor. An appropriately qualified accountant may save you tax that could more than outweigh their fees. His/her advice to further your business could be invalauble to your business.
I have come across many accountants who are incredibly busy since they have to do far more work because they charging fees that are not a reflection of their time and skill involved. This means they are so engrossed in routine accounting tasks, they just do not have the time to be proactive for their clients. Potential clients inform me time and time again – “my accountant is not proactive and I only hear from him/her only once a year”. How can you expect an accountant to be proactive when the fees are so low? We as accountants are not blameless here. We fail to communicate this point to clients. This is because of the fear of losing them to another cheap accountant.
My point is if your are looking for purely compliance (routine) accountancy work, fair enough they are many accountants who provide a low cost service. Southside also provides this level of service as well. If you would like a proactive service providing tax and business advice you will need to pay more. Accountant fees are based on time and skill involved in doing your work.
The old adage applies – You get what you pay for folks. With Southside there are no hidden fees, the fees we quote are the fees you pay.
The tax treatment of a van is far more favorable compared to a car. A question we are often asked what are tax advantages of a van and what can be classed as a van by the taxman.
In response to a Free Index question on the subject, I provided a full response. Rather than repeating this information, here is the link to this information:
Anyone who has any doubts of leaving their secure job with a pension for a risky life as an entrepreneur should listen to this programme. Further, if you are an entrepreneur listen to your successful colleagues and learn from those who have actually done it. Cordock got together self made multi millionaires to talk about their experience. They have all failed on their road to success. It is how they handle failure that is an important factor to their success. Furthermore, it was great to hear these multi millionaires are no better than you or I. Another key factors to their success is their absolute courage of their convictions.
This programme is available from http://www.audible.co.uk/aduk/site/product.jsp?p=BK_MMBA_000001UK&BV_UseBVCookie=Yes
As a Free Index Finance and Accounting Expert I respond to tax questions on FreeIndex.
One of these question was about records that a cash based business needs to keep for tax purposes. Here is the link that provides this information http://www.freeindex.co.uk/business-advice/what-documentation-to-keep-for-your-tax-return_1144.htm
In a LLP the partners liability is limited to the amount they have invested in the business plus any personal guarantees they have given.
Partnerships (none LLP)
In partnership partners liability is not limited (their personal assets are not protected) they are joint and severally liable for partnership debts.
The procedures of setting up a Partnership and LLP are well explained by the Business Link –http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073789611 .
Dissolving a Partnership is straightforward – paying all your creditors and informing HMRC. There is a formal process of dissolving LLP: http://www.companieshouse.gov.uk/about/gbhtml/gpllp3.shtml#ch1
This is a well known Covey’s book. I found it a heavy read. I forced myself to complete the book. It made a lot of sense, but I did not apply his suggestions. After a few months, I heard the audio version of the book. This again was not an easy listen. I found his ideas and concepts very helpful. To fully understand Covey, I will need to listen to his audio book several times.
The area that I related to most was his inside-out approach – my interpretation of this – to be successful we need to start looking at ourselves first . “The way we see things is the source of the way we think and the way we act.’’ These paradigms are the source of our attitudes and behaviors. We cannot act with integrity outside of them. We simply cannot maintain wholeness if we talk and walk differently than we see. To try to change outward attitudes and behaviours does very little good in the long run if we fail to examine the basic paradigms from which those attitudes and behaviours flow.
Covey says achieving insight involves making a ’’paradigm shift’’ which causes us to perceive things differently. He notes that life threatening experiences or a major role change in a person’s life can change a person’s paradigm. Sometimes, just a little more knowledge might help us examine our paradigms.
The difficult part on changing accountants for most clients is breaking emotional ties with their current accountants. They have been with their accountants for years and find it difficult to inform them. This is understandable. It would be a lot easier if clients think of this as a business decision. To further your business, this needs to happen. Furthermore, this is a normal course in any business. We can make the process easier by drafting a letter for you, thanking your previous accountant for their services and letting them know that you have decided to make the move.
Once this is done we will contact your previous accountant asking them if they are any professional reasons why we should not act for you. We will also request last set of accounts, tax returns and backing schedules. It is normal practice for accountants not to charge you for this.